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Ericsson GE Mobile Communications, Inc. v. Motorola Communications & Electronics, Inc.
United States Court of Appeals for the Eleventh Circuit
120 F.3d 216 (1997)
The city of Birmingham, Alabama (the city) sought to purchase a new public-safety communications system to be used by its police and fire departments. In 1993 the city issued a request for bids for two different communications systems, the APCO 16 and the APCO 25. Ericsson GE Communications (Ericsson) (plaintiff) placed a bid of approximately $9.75 million for the APCO 16 system. Motorola Communications & Electronics, Inc. (Motorola) (defendant) placed a bid of approximately $11.3 million for the APCO 25 system. After deliberation, the city concluded that the APCO 25 system would be better for the city. The city rejected both bids and entered into a new contract with Motorola for an APCO 25 system. Ericsson filed a diversity lawsuit in federal court, alleging that Motorola and the city violated the Alabama Competitive Bid Law and sought an injunction enjoining the parties from entering into the contract. The federal district court found that Motorola had improperly influenced city officials in violation of the law and voided the contract. Motorola appealed.
Rule of Law
Holding and Reasoning (Kravitch, J.)
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